Major Procurement Issue: How to Fix Them with Technology

Procurement managers have a lot of responsibilities including managing vendors, tracking inventory, managing payments, and a lot more. And, they also need to ensure that all of these processes are as efficient as possible. 

No matter how good the manager and their team are, there is always scope for human error that can be eliminated using technology. There are several challenges faced by procurement leaders that can be fixed simply by using the right technology. Here are the three most common procurement issues along with insights on how to fix them using technology.

Cost Reduction

The biggest challenge for any procurement leader is the inability to reduce costs beyond a certain point. Inefficient processes are one of the main causes of this as they can lead to wasted time and resources.

But the good news is that you can automate and streamline processes and make them more accurate and efficient. Technologies like digitization and automation can significantly optimize routine, repetitive tasks and eliminate any human error.

Something as simple as moving from a paper-based system to an online system can save you a lot by removing paper costs.

Supplier Management and Quality Control

Another major cause of worry for procurement managers is ensuring that the products are sourced from the right vendors and are of the highest quality. You cannot manually check each and every procured item and assess its quality. That would simply be too time-consuming and infeasible.

This is an area where using simple technology like a supplier management software solution can help. You can keep track of all of your best-performing vendors and their past records in terms of product quality, timely delivery, etc.

Inventory Management and Invoicing

Keeping track of current inventory and predicting future needs is a regular job requirement for any procurement team. However, doing this manually can be a tedious and inefficient process. And, even if you have the time and resources to invest in this feat, it will always be prone to error.

This is where an e-procurement solution can help you by taking care of all of your inventory management needs. And, software also has added functionalities like e-invoicing that can further streamline your processes. 

Conclusion

There are a lot of procurement issues that managers face on a day-to-day basis, which can be easily avoided with the use of the right technology. Automation can make processes quicker, and digitization can save on costs and resources. There’s a lot that you can achieve by leveraging the right technology and optimizing your processes. Want to learn more about the numerous procurement challenges and how technology can help? Check out the infographic by PurchaseControl.

Author Bio – Michael, Founder & CEO with international experience in Procurement and Spend Management Software – ‘PurchaseControl’

major procurement issues - how to fix them with technology